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Performance Improvement through Lean System: A Case of Karachi Shipyard

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 Performance Improvement through Lean
System Implementation: A Case of Karachi
Shipyard Engineering Works
A. N. Sanjrani1, S. U. Abdi2, S. A. Shah3
Department of Mechanical Engineering, Mehran University of Engineering & Technology, Khairpur 1,3
University of Ottawa, Canada2

Abstract: waste from unnecessary motion (movement of people),

waste from unnecessary processes, and waste from
The time refers ‘lean’ production to elimination of waste defected products.
both within the firm and across the supply chain. Toyota
Lean system refers to “Operations systems which
Corporation was the first to comprehensively adopt the
maximize value addition by each activity of the company
lean methodology. Since then leading manufacturing
by eliminating wastes and delays”. Lean system includes
organizations have embraced this philosophy to acquire a
company’s operations strategy, process design, quality
competitive edge in the global market. This paper reports
management, constraint management, layout design,
performance improvement at Karachi Shipyard and
supply chain design, technology and inventory
Engineering Works (KSEW, Pakistan) achieved through
management and can be utilized by both service and
the implementation of six lean system tools (5S, SMART
manufacturing/production organizations [i]. Shahram
Obj., RCA. 5 Whys, Kaizen, JIT and Poka Yoke with
(2008) states lean production as “manufacturing system
support of CAPA). KSEW operation had historically
without waste” whereas waste is described as “everything
suffered from work delay, cost overruns, material
other than minimum amount of parts, material, equipment
wastage, low manpower utilization, and low worker
and working time that is vital for production” [ii].
morale. The implementation of lean production tools at
Papadopoulou and Ozbayrak (2005) define lean
KSEW minimized work order delays, eliminated
production as “an approach to manufacture that is aimed
breakdowns, increased work space, and reduced sorting
at eradication of waste while emphasizing the requirement
time, rework and material waste. Idle manpower and
of continuous improvement” [iii]. Sanchez and Perez
machinery were productively utilized, the product quality,
(2001) mention lean production as a theoretical structure
skill set of employees, customer satisfaction, and overall
based on conventional philosophies and techniques such
business performance as recorded were found improved.
as multi-functional teams, eradication of zero-value
Key Words: Lean Systems, Performance Improvement activities, supplier integration and continuous
improvement to attain production efficiency and brings
I. Introduction: Just-in Time [iv]. Shah and Ward (2003) describe lean
production as “an inter-disciplinary methodology which
The term ‘lean’ was first introduced by James Womack, includes management practices like quality system, JIT,
Daniel Jones and Daniel Roos. The methodology that work squads, supplier management in an integrated
changed the world manufacturing production, which was environment” [v]. Similarly, Agus and Hajinoor (2012)
reported on the production practices adopted by Toyota emphasize on the significance of technology and
Motor Corporation. According to Womack & Jones innovation in lean production [vi]. A number of
(1996), the tenet of ‘lean’ production is elimination of frameworks have been proposed to integrate Green and
waste both within the industry and across the supply Lean Manufacturing systems for the improvement of the
chain. Lean production realizes, by emphasizing the performance production systems [vii]. Hence, evidence
importance of smooth flow, continuous improvement and specifies that the integration of the two approaches may
employee empowerment (Womack & Jones, 1996). have inherited the same limitations as the individual
Taiichi Ohno, the father of Toyota Production System, Green, quality management system and Lean methods.
defined Waste (Muda) as any human activity, which
absorbs resources but creates no value. Ohno (1988) Established in 1955 by the Pakistan Industrial
identifies seven types of Muda; waste from Development Corporation (PIDC), KSEW is only
overproduction, waste from waiting inventories, waste shipbuilding facility in Pakistan. Its major business areas
from unnecessary transport, waste from waiting times, are Naval and Commercial Shipbuilding and repair. It
functions under administrative control of the Federal
Ministry of Defense Production. Pakistan Shipbuilding skills. Third, workers’ empowerment with command over
Industry has gradually lost international competitiveness operation and task rotation is achieved through teamwork.
owing to the high cost of construction at KSEW, which is Human element composed of above three competencies
considerably higher than its regional competitors (India, enables Lean Manufacturing, a dynamic system which
Bangladesh, China & South Korea). Nevertheless, pursues to accomplish greater performance always [xi].
KSEW’s administration and employees are motivated and Engineers have played central role in the calculation of
wish to improve its capacity and competitiveness. KSEW production defects, problems and manpower optimization
has been working with traditional management practices for product development (PD) system [xii].
and business models. To remain competitive in
International market as well as to meet International Lean practices enable organizations to develop their
Standards of Shipbuilding it is very important for KESW competitiveness, by cost reduction, increased quality and
to reduce lead and setup time, avoid delays, reduce rework response to customer needs. Reasoning behind
and wastage, and manage effective utilization of 4M implementation of Lean is strong business drivers and
resources. In this research project, lean system tools and successful implementation of Lean requires substantial
practices were introduced at KSEW to resolve ongoing conversion of the organization’s culture and practices.
manpower and production problems and provide a Lean production targets at meeting customers’ demand by
sustainable solution to the KSEW administration. providing high quality products and services at right time
and at reasonable cost [xiii]. Lean production exists on
II. Background both strategic and operational level. The strategic level
The Lean System approach is to optimize the production refers to the customers’ value and identification of value
& cost with respect to time throughout the manufacturing stream, whereas the operational level deals with various
process and supply chain. As global competition has tools and practices that lead to elimination of wastes and
provide continuous improvement [xiv].
created intense challenges for manufacturing companies.
Those without lean system production eventually lose
business. Manufacturing corporations are not only contest A. Lean System tools and techniques
on prices, but also on introducing novel technological, Lean Systems’ tools and techniques implemented in this
innovative, creative and quality products to enable them research are briefly introduced below:
to become leaders in market and command higher profits.
Lean system is considered a winning strategy to compete
1. JIT:
effectively in today’s global economy, meet customers’
Just in Time philosophy refers to the concept that waste
expectations and their demand for price reductions in an
environment of fast paced technological advancements, can be removed by cutting redundant capacity (or
where implementation of Quality Management System inventory) and by eliminating non-value-added processes
has become a necessity for every organization [viii]. in operations. A mechanism that organizes resources,
Implementation of Lean system provides benefits like information flows, and decision rules that allow an
Improvement in Quality and Performance, fewer defects organization realizes the advantages of JIT principles is
and rework, fewer machine and process breakdowns, known as a JIT system. JIT concept that causes material
lower levels of Inventory, higher level of stock turnover,
to be produced only when needed and transported to
improved efficiencies, greater output per man hour,
improved delivery performance, rapid development, where it is required is called Pull System.
better customer satisfaction, value-added employee
morale and involvement, improved supplier relations, 2. Kaizen:
greater profits and business competitiveness [ix]. An By constantly identifying areas that are in need of
organization where Lean System is implemented defines improvement, lean systems lead to continuous
the events on which the system is based. Womack et al improvement in quality and productivity. The Japanese
1990 mention supply, design and manufacturing as term for this approach to process improvement is
principal activities in Lean organization. According to ‘Kaizen’. The essence of continuous improvement is the
Womack and Jones (1996), proposing value, value consideration that surplus capacity hides underlying
stream, flow, pull and perfection are the five basic
difficulties in the process.
principles of lean system implementation. Techniques
used in Lean Systems greatly rely on workforce
capabilities [x]. First and foremost, creative thinking 3. 5S:
delivers continuous improvement with the help of 5S is a technique for organizing, cleaning, developing and
feedback and facilitates continuous improvement of sustaining a productive environment. It represents five
production line’s routine activities. Secondly, recurrences related terms in Japanese, each beginning with as S
of defects are prevented by applying problem solving (sorting, straightening, shinning, standardizing and
sustaining), that describe workplace practices amenable to Lean principles have extended its applicability from the
visual controls and lean manufacturing. 5S are performed production to service industry, and from defense to
systematically in order to achieve lean systems. construction industry, which states the universality, and
productivity of this technique. Traditional shipbuilding
Sixth ‘S’, standing for ‘Safety’ has been identified by industry can take advantage from Lean manufacturing for
some practitioners [xv]. Placed between Shine and increasing their values and profit. The lean shipbuilding
Standardize, it states safety of work place and employees. organizations have achieved high performance and
However, it is debatable whether sixth S is considered as quality that carry on adding value to the clients and
complementary pillar to the 5S tool or as feature of each community [xix].
of 5S pillars, because safety is considered in-built concept
in 5S. Bicheno 2004 asserts that safety procedures and Lean Shipbuilding is much specified, limited division of
their standardization should be developed, maintained and utilization of Lean and is considered to be one of the
audited as part of 5S program [xvi]. extensions beyond Lean Construction. Lean Shipbuilding
discusses cost reduction through waste elimination, non-
4. Poka Yoke: value adding processes and inventories, for customer’s
Method of error proofing aimed at developing fail-safe satisfaction improvement. Common aspects of
shipbuilding industry is that it is labor-intensive because
systems that reduce human error is called Poka-Yoke or
production automation format is limited. Shipbuilding
Fool Proof system. Corrective and Preventive Actions industry’s products are heavy in volume and weight and
(CAPA) are used to improve organization manufacturing each product consist of various components of different
process by eliminating causes of non-conformities and types thus making production processes and its command
other undesirable situations. highly sophisticated. The idea of cooperation has vital
importance in shipbuilding as design, planning and
5. Root Cause Analysis (RCA): manufacturing processes intersect, and production
Root Cause Analysis is a systematic approach for processes are tremendously complex at the same time
addressing problems in result of non-conformance to [xx].
detect the problem origin. RCA is the failure of a process
which, when resolved, it prevents problem reoccurrence Shipyards around the globe have explicit mechanism for
throughout the process based on CAPA and Poka Yoke. their production practices and their methodology to
This procedure encompasses data collection, cause implement Lean Systems varies. It is anticipated that by
charting, root cause identification, generating implementing principles of Lean manufacturing in
recommendation, and its implementation. shipbuilding industry productivity could increase by
100% and built time be decreased up to 50%[xxi]. Fruitful
Root causes are factors under management control, for application of lean principles has enabled Japanese
which effective recommendations can be generated [xvii]. manufacturing organization, which also includes
5 Whys is an iterative interrogative technique used to shipyards and other manufacturing industries to compare
expose the cause & effect relationships underlying certain within the sister organization as role model such as
problem. The primary goal is to determine the origin of traditional shipyard and lean shipyards, when it comes to
consequence in result the defect in production repeatedly productivity, product quality and the utilization of human
asking the question Why? [xviii]. resources. Currently Japanese shipyards are considered
best-examples of Lean implementation in shipbuilding
6. SMART Objectives: industry from the rest of the traditional shipyards [xxii]
Set, Measurable, Achievable, Realistic and Timed [xxviii].
(Smart) Objectives refer to clear, crisp and doable
objectives based on factual approach as per Quality Indicators reveal that Japanese shipbuilding industry
Management System (ISO 9001:2015) standard so that improved its productivity by 150%, from 1965 to 1995
improvement can easily be observed in the process. These which is because of the continual approach of
objectives planned on annually, biannually and quarterly development of Lean principles [xxiii].
basis be specific to focus problematic areas. This tool was
effectively utilized to measure progress within the Shipyards in Norway have implemented an entirely new
assigned time frame to successfully the complete the production approach of lean shipbuilding, which is a
targets and objective through audits of process. blend of Lean manufacturing and Lean construction
[xxiv]. The characteristics of Norwegian shipbuilding
B. Lean System in International Shipbuilding industry are one-of-a-kind product, reliable production
Industry: facilities, and fixed position layout [xxv] [xi]. Norwegian
shipbuilding industry is developing Lean Shipbuilding
based on cooperation with Lean construction forums in observation from safety department. Formats were
order to achieve process improvement and competitive established as Work Order Sheet (WOS), Safety and QC
advantage [xxv]. observation Sheet and Audit Report.

In order to reduce cost and establish competitiveness in
shipbuilding internationally, USA’s National
Shipbuilding Research Program (NSRP) has launched a
Lean Shipbuilding Initiative, to enable transformation to
Lean practices across shipbuilding and ship repair
industries in America [xxvi]. Lean Project Planning (LPP)
is also one of the best approach for project planning that
has been developed from the Last Planner System to
overcome shortcomings in the Earned Value Management
approach [xxvii].
• Delays in completion of WOS (Work Order Sheets).
That is why the shipbuilding industries are also
implementing lean manufacturing techniques in their •
manufacturing systems to avoid the delay in completion
product and to reduce the wastage of material. The
fabrication is the main value-added process of the •
manufacturing of ship blocks and the inspection of the
surveyor is key component to ensure integral structural
members of ship to complete as per given specification •
without defect. However, it is not possible that every ship
did not contain any defect in the fabrication Process
[xxviii].
• Unused computing resources; advanced technology
Practical lessons learnt from implementation of lean
systems illustrates that it is an influential technique for
traditional change in manufacturing. Lean
implementation is low cost and have a significant ROI.
Main advantage of lean is that it includes hassle free
thinking and support fruitful results for improvement
efforts.
III. Preliminary Investigation and Study Observations)
Objectives:
A. Data Collection & Analysis: iii. Internal Audits
The data was collected by the Quality Assurance (QA)
Auditors, quality Control (QC) Inspectors, Safety
inspectors & Area Planners. The manufacturing processes
data were collected through the QA Auditors, whereas
execution of Product related data was collected through
Area Planners, QC inspectors and safety related
A preliminary inspection of the KSEW work environment
revealed the following weaknesses:
• Access inventory (parts and material) without proper
identification labels were left at store, yard, field and
shop floor area.
• Problems in transporting, handling, and receiving of
items from one shop to another due to
mismanagement of transportation resources (cranes,
16-wheeler flatbed vehicles, fork lifters, etc.).
Higher quantities of defective items. Most of the
defects occurred in fabricating, welding, painting &
installations of different items.
Over-processing in shipbuilding hall; unnecessary
movement of men and material.
Underutilization of manpower. Most workers were
idle and were not properly assigned or effectively
utilized for production at the shop floor level.
and facilities were rarely utilized to their maximum
advantage.
As part of the investigation, KSEW records consisting of
Work Order Sheets (WOS) were analyzed to identify the
reasons for work delays. Additionally, interviews with
shop managers were conducted that focused on:
i. Reviewing Record of Old WOS
ii. Reviewing Record of Defects (QC & Client
Shop records at KSEW revealed that Actual Man Hours
in every department exceeded the Total Scheduled Man
Hours. Graphical statistics given below (Fig. 1) show
comparison of the Actual and Scheduled Man hours and
the utilization of excess man hours in the various
departments at KSEW prior to introduction of Lean

Systems.
 Internal Audit Observations
Measurement
Design
Resource Planning
Material
Man Power
Work Plan
Duties (KPI)
Safety
Maintenance and calibration
Methods

0 10 20 30 40 50 60 70 80

Intensity of Problems

Figure 2: Internal Audit Observations

B. Research Methodology: historical trends. Since the introduction of lean system

IV. Six Tools of Lean System Modeled and
Implemented:
According to study prospective, it is worth mentioning
that six lean manufacturing tools crack the production.
This model is named as hammer of lean manufacturing
in ship building industry to reduce the work order
delays and overall performance as referred in figure.
3.
i. Improve direct manpower efficiency and utilization.
ii. Identify and eliminate tools sorting time delays.
Figure 3: Hammer based on Six Lean Manufacturing Tools
iii. Machines breakdowns causes of delays.
A. Root Cause Analysis
Routine data gathering enables managers to use
statistical tools to analyze data and take corrective
actions geared toward improvement. Previously, at
KSEW, data was gathered and documented, but no
analysis tools were employed. Work place decisions
for improvement were based on experience and not on
last year, work sheets data and defect records
(observed by Quality Control, client and class
surveyor) were reviewed and statistics were
developed. These were subsequently analyzed via root
cause analysis through Fish bone diagram (Cause &
Effect Diagram, Fig. 3).
Core areas of KSEW, as Quality Assurance
Department, Ship Building Hall, Block Fabrication
and Machinery Outfit, were designated for
implementation of Lean Systems. To keep it
manageable and complete in reasonable time, the
following study objectives were defined as per the part
of research methodology:
Identify and eliminate time delays in work order
processing.
Identify and eliminate non-value-added activities
/operations.
Identify and eliminate re-works and wastage.
After implementing lean system, considerable
improvement was achieved in above stated six areas
and work pace was improved. Further this research
work presents visualization of activities, information
flow, and proper utilization of 4M resources as
management tool for improvement and effectiveness.
Moreover, the significance of this research work may
stand as a benchmark to implement in Pakistani
culture and working style and would serve as role
model for Lean Systems Implementation in order to
Figure 3: WOS analysis using fish bone diagram (Cause and Effect diagram)
Poka Yoke and CAPA:
In this methodology, identified problems are solved by
taking Corrective and Preventive Actions (CAPA) to
avoid recurrence, and are aimed to implement error free
/ mistake proof ‘Poka Yoke’ process. QHSE team
members together with concerned managers review and
analyze problems, and recommend corrective and
preventive action (CAPA) aiming that after
implementation of these changes the system would
become fool proof and free from mistakes (Poka Yoke).
Recommendations are endorsed in corrective and
preventive action format as per requirement of ISO 9001
standards. Further interrogation was carried out through
5 Why tool.
5 Whys to Identify delays (Planning
Department)
1. Work Order Sheets are not completed on time.
Why?
2. Work starts late; moreover, work relationship is not
categorized in the system as ‘early start, early finish,
late start and late finish with slack/float. Why?
3. Shortage of planning personnel, while most of them
have not received adequate training. Why?
achieve improved performance in Shipbuilding
Industry of under-developed countries.
4. Hiring of planning personnel is delayed, and the few
planning employees did not have field experience
and project management training. Why?
5. Newly recruited personnel in Planning Department
without shipyard orientation are asked to commence
management tasks without local knowledge of
procedures. Why?
Root Cause Analysis: Competencies of Planning
Department Personnel are inadequate; hence, they are
being dictated by Production department.
CAPA / Poka Yoke: Planning personnel lacking in
knowledge should be trained by deputing one senior
manager to each newly appointed employee as a coach.
5 Whys to Identify delays (Production
Department)
1. Work Order Sheets are not started and not finished
on time. Why?
2. Improper management and slackness observed as
Scheduled Start vs. Actual Start differ. Why?
3. Shop floor actual planning & monitoring to manage
employees & WOS is absent, resulting in excess of
man hours, as most of work takes place in overtime.
Why?
4. Crew compositions are incorrect, with improper
work assignment from supervisors to worker. Why?
5. Supervisors do not properly utilize their staff, which
increases time lines and causes delays. Why?
Root Cause Analysis: Supervisors are illiterate and
untrained; hence, they do not plan, manage and execute
work according to WOS.
CAPA / Poka Yoke: Training of supervisors to be
initiated and senior managers will get involved in real
planning of shop floor.
5 Whys to Identify delays (Design Department)
1. WOS are started early but not finished on time due
to shortage of resources and frequent rework. Why?
2. Revised and amended drawings are received late,
which causes rework. Why?
3. Drawing revisions, amendments, missing details
and improper technical specifications halt the
production. As a result, queries are sent to the
designer and await reply, resulting in overtime.
Why?
4. Shipyard does not have its own design house to
promptly resolve the issues. Hence, normal working
hours are not properly utilized, and 40 % of work is
completed in overtime. Workers do not involve in
work during day time, with support from
union/action committee. Additionally,
unavailability of multi-skilled workers. Why?
5. When managers send their requirements to drawing
distribution section, additional resources are neither
provided on time nor utilized properly (sorting time
is high, over processing and excess use of
inventory); plus, shortage of man power. Why?
Root Cause Analysis: Monitoring, resource allocation,
and management aspects are weak, so regular
correspondence and product related issues are not
addressed in time, i.e., design house availability is the
cause of the problem.
CAPA / Poka Yoke: Monitoring must be strengthened
by the supervisors by implementing self -check and
timely raising queries on incomplete or incorrect
drawings.
5 Whys to Identify delays (Maintenance
Department)
1. Shop floor’s actual planning & monitoring does not
exist resulting in excess man hours. Why?
2. Lifting capacity is low, and cannot handle more than
40 tons. Further most of the machines are old and
not working on their full capacity. Why?
3. Preventive and/or routine maintenance is not carried
out, whereas only corrective maintenance on
machines is carried out. Why?
4. Shop floor supervisor and machine operators lack
expertise to perform preventive maintenance, and
only corrective maintenance is implemented due to
absence of maintenance system at maintenance
department. Why?
5. Machine operators are neither trained in-house nor
from OEM. Further, KSEW’s training institute does
not have qualified trainers and usually calls experts
from different shops. Why?
Root Cause Analysis: Lifting capacity is low and
planning aspect at shop floor is missing. Preventive
/Routine Maintenance is missing, and no proper
procedure and log sheets are available. Workers are not
familiar with the preventive maintenance routines.
CAPA / Poka Yoke: Lifting capacity should be
increased. Preventive maintenance to be initiated by the
machine operators and planning aspect at shop floor is to
be covered by shop floor manager. Machine operators’
needs are to be addressed that their training from training
institute or OEM is to be arranged to encounter
breakdown and work order delays.
5 Whys; Quality Control Department &
Client Observations regarding Defects:
1. Poor workmanship due to insufficient field
experience of managers and workers on different
ships. Why?
2. Employees’ attitude lacks concentration and focus
on job. Why?
3. Improper supervision & guidance because
experienced second line management (engineers)
were missing. Why?
4. Engineers were not hired as needed, and supervisors
did not check the product before offering Quality
Control. Why?
5. No self-check Performa was available in system.
Self-check of Supervisor was missing causing 35%
of work to be rejected. Why?
Root Cause Analysis: Supervisor self-check Performa
does not exist in the current system.
CAPA / Poka Yoke: Self check system is to be
implemented.
B. 5S (Sort, Set, Shine, Standardize & Sustain)
Common problems in all work orders sheets were
identified and solved by applying 5 Whys tool. Kaizen,
5S, Corrective and Preventive Actions (CAPA) tools
were used, and by setting SMART objectives and
similarly QC observation were analyzed.
5S technique was implemented in Quality Assurance
department, Shipbuilding Hall, Block Fabrication and
Machinery outfit section. After 5S implementation, the
following improvements were observed:
• Work order delays were reduced by eliminating the
sorting time and traceability of tools, sub-
assemblies and parts.
• Power and hand tools management improved by
elimination of searching for serviceable tools, which
also minimized movement of workers from ship to
store.
• Critical defects associated with paint work were
eliminated.
• High rise racks were fabricated to store consumables
(raised flange and piping spools) and eliminate
waste. The standard of housekeeping in the work
area also improved.
• Sorting time of files in the QA department was
reduced by applying identification tags and color
coding to files.
• QA department was made accessible to all
employees and a meeting table for Kaizen activities
was placed in QA department.
• Cleaning and space saving improved the outlook of
QA and other departments, and now it gives a better
impression to external auditors and clients.
Pictorial representation of 5S implementation is shown
in Appendix 1
C. Just in Time
The Kit of Material (KoM) were purchased and tagged
by the project number and stored at the Warehouse. Prior
to lean system implementation, material was procured on
the basis of forecast according to schedule planning. This
enabled the planning department to plan production
schedule with Work order sheet (WOS) and material
requisition note (MRN) that permitted drawing material
from store. Planning production on the basis of forecast,
however, created excess inventory that occupied space.
Moreover, expiry of the dated material and consumables,
such as paint and electrodes, caused unnecessary waste.
Their storage and preservation require huge amount to
maintain serviceability. In practice, the vessel orders
often differed from the expression of intent and forecast.
To resolve the inventory problem, ‘Just in Time’ concept
was introduced, and the following modifications in the
ordering procedure were made:
i. After taking an account of project the Kits of
Material (KOM) will be procured against confirmed
orders by KSEW.
ii. The client will provide all the Kit of Material
(KOM) before start of project or in packages
according to schedule.
D. Kaizen (Continuous Improvement)
Kaizen is essential part of all progressive organizations
and is also requirement to obtain ISO 9001 certification.
A unique method of Kaizen implementation without
affecting the ongoing production activities was proposed
in this research. Although, applied in segregation from
other Lean techniques, it may lose momentum
nevertheless 5S should be used as a ground tool for
further change efforts.
E. SMART (Set, Measurable Achievable
Realistic Timed) objectives
The commitment of management to production is
reflected in quality objectives; therefore, objectives must
be set keeping in view the continuous improvement
process at each level. Following that, prepared objectives
are distributed to each departmental manager, and
communicated to every employee in the organization.
Effectiveness of the objectives is double-checked after
conducting periodic audits to ensure achievement of
objectives according to plan. If objectives are not
achieved then a justification asked from concerned
employees if required, and re-planning of objectives is
regularly carried out.
Smart objectives are implemented in all divisions of
KSEW as referred in table 1. This is an effective tool to
plan and set smart targets for both long and short term
according to time line as decided by general manager in
consultation of QHSE team members after RCA.
Table: 1 “SMART Objectives and Achievements after implementing Lean tools”
Main Business Unit – 1 (SHIPBUILDING SHOPS)
Sr.# SMART Objectives Achievement
Timely completion of raised WOS within the agreed Overall Shop WOS completed within time =
01
WOS dates (Start/Finish) 100%
100% calibration of all in use Measuring & Testing Calibration of Measuring & Testing Equipment
02
Equipment in all workshops in KSEW =100%
Plan Load Test of all Cranes, Shackles, Slings, Wire Planning of Load Test Cranes, Shackles, Wire
03
Ropes etc. before due date Rope etc. = 72%
Quality Control department observation to be Quality Control department observation
04
decreased to 50% decreased to 61%
05 Upkeep of Shop Equipment/Machineries 80% Upkeep of shop equipment / machinery = 71%

F. Improvement in WOS timey execution after Lean System tools that resulted in saving excess man
Lean Systems implementation hours. Block wise statistics of improvement is shown in
following table.02 which indicates up to 5% saving in
The problem of delays in completion of Work Order manhour of the two pushing tugs in a one-month duration.
Sheets was solved through implementation of selected
Table: 02 “Total Blocks Manufacturing Sch. V/s Act. Man Hours before and after Lean System
Implementation
Description of Blocks Schedule Actual Man Actual Man Result Total saved Man
Man Hours without hours with LM Saved Hours in percentage
Hours LM Man
Hours
Keel Block 8292 8562 8292 0
ST Block 3233 3302 3200 33
CR Block 7727 8102 7354 373
BW Block 6592 6704 6233 359
ER Block 5236 5844 5236 0 5% (Five
BD Block 3979 3992 3489 490 Percentage)
WH Block 2609 2754 2600 9
Bilge Keel Marking 920 920 688 232
B-D WH Block 2216 2365 2200 16
Radar MST 1159 1180 1159 0
Launching Cradle arrangements 6748 6748 6106 642
 Reduction in identified problem of Internal Audit before and after lean implementation

Internal Audit Identified Problems Comparison

80 75

70

60

50
39 40
40
31 29
30 26
22 21 23 25
19 18 17
20
10 8 6
10
3 3 3 1
0

Previous Audit Current Audit

Figure 6: Comparison between Last and Current Internal Audit (after Lean implementation)

V. Conclusion / Results: Customer relationship has improved by 80 % as most of

Critical selection of Lean System tools and their
implementation has resulted in reduced man hours,
minimized delays and tool defects, increased quality,
bottom line performance, greater productivity, cost
reduction and minimization of reworks in the
organization.
5S implementation delivered excellent results as sorting
time of files, tools, traceability of sub-assemblies have
become easier and less time consuming. More office
space is now available with improved overall look which
gives a good impression to the visitors. Machinery
breakdowns have been reduced up to five percentage.
Handling of materials before Lean Systems
implementation was inappropriate as pipes and fittings
were placed on dusty floor and most of the fittings like
flanges, metal pieces and other valuable items were
eventually taken away as garbage. After lean
implementation all pipes and fitting equipment is kept on
racks and stands. Waste material is now segregated
according to color coded bins.
the material is now procured on ‘Just in Time’ basis from
prequalified suppliers and original equipment
manufacturers, by side-lining low profile suppliers and
their sub-standard materials. Lean manufacturing has
enabled manufacturer to become competitive in the
market for providing quality products at low cost. It also
has negative impact that at time of peak demand from
customer the unitability of material shall hamper the
production and customer satisfaction. Such as
procurement of steel plate, engine, radars, electrical
accessories and power generation units. The limitation of
JIT organization cannot accept the customer orders
before concurrence and viability of material and cost
impact on product development.
Benefits of Lean Implementation at KSEW include
minimization of delays, reduced number of defects and
reworks, improved inventory handling, an adequate
solution for scarcity of space, and a better outlook of
shops in shipyard. It has improved employees’ morale,
motivation and work involvement, ensuring on-time
delivery of products and services. Increased efficiency
and productivity of man, machine and material resources
has boosted the output per man-hour resulting in Future Work: Assembly line and automation will
increased customer satisfaction and significantly greater
reduce the production time up to approximately 40%.
business profitability.

PERFORMANCE IMPROVEMENT AFTER LEAN

IMPLEMENTATION 2326.23
2107
Rupees (M)

1330
1061
809.5
576

0 0
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Figure 7: Improved Performance resulting in higher revenue after Lean implementation

Appendix I:

Before After Before After

Workshops at Shipbuilding hall, Block Fabrication and Pipe shop before and after implementation of 5S.

Before After
 Quality Assurance Department Before and After 5S Implementation

5S Implementation in QA department before & after Lean System implementation

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